Financial Crime World

Financial Regulations: Protecting Sensitive Information

Institutions operating in today’s digital landscape are subject to a multitude of financial regulations designed to safeguard sensitive customer data. These laws and guidelines aim to provide individuals with greater control over their personal information while ensuring that institutions maintain the highest standards of security.

Key Financial Regulations

California Consumer Privacy Act (CCPA)

The CCPA grants California consumers specific rights regarding their personal information:

  • Right to Know: Consumers have the right to know what information a business collects and sells.
  • Right to Delete or Opt-Out: They can delete or opt-out of selling personal information.
  • Right to Correct Inaccurate Information: Individuals can correct inaccurate personal data.

General Data Protection Regulation (GDPR)

Widely regarded as the strongest data protection rules globally, GDPR provides individuals with extensive rights regarding their data:

  • Right to Access: Individuals have the right to access their personal information.
  • Rectify and Erase: They can request rectification or erasure of inaccurate or unwanted data.
  • Restrict Processing: Consumers can restrict processing of their personal data in certain situations.
  • Object to Processing: Individuals can object to processing for direct marketing purposes.
  • Data Portability: GDPR also guarantees the right to data portability, allowing individuals to easily transfer their personal information between service providers.

Compliance Requirements

Institutions must adhere to various laws and regulations:

Financial Regulations and Compliance Requirements

Some key requirements include:

  • Encryption: Protect sensitive data, including cardholder information, with encryption both in storage and in transit.
  • Firewalls and Web Gateways: Install and maintain a firewall to restrict access to payment systems and deny unauthorized traffic.
  • Intrusion Detection: Use an intrusion detection system (IDS) to detect and prevent intrusions into the network.
  • Logging and Data Collection: Log security event information and analyze it for potentially threatening network activity.
  • Required Policies and Processes: Establish and uphold security policies, including incident reporting and response, and provide annual security awareness training to staff handling sensitive data.

Due Diligence on Third-Party Service Providers

Institutions must conduct robust due diligence when onboarding third-party service providers and perform ongoing monitoring of the relationship to ensure they meet required standards for information security.